DMSD Insider: Imprivata, a provider of health IT security services, files for IPO

Monday, March 31, 2014

Imprivata, a provider of health IT security services, files for IPO

Imprivata, a provider of health IT security services, files for IPO:

Above: A nurse demonstrates Imprivata's single-sign on with a proximity card reader attached to a nursing station laptop.

Image Credit: Imprivata video

Startups that provide IT services to health care companies continue to thrive.

The latest company to cash in on that trend is Imprivata, which just announced plans to make an initial public offering of stock on the NYSE. Imprivata stands to raise $115 million in the IPO.

Imprivata’s products include a single sign-on tool, Imprivata OneSign, for managing access to health care systems. The company also offers a workflow tool and tools for secure communications, including texting securely. With OneSign, instead of of logging on with a username and password, clinicians can log on to their computer systems using fingerprint readers, proximity cards, smartcards, or tokens. The company claims, in a filing with the SEC, that some of its customers have seen their health care workers save 45 minutes per shift thanks to its technology.

Imprivata provides services to more than 900 health care organizations in 18 countries, representing 2.6 million people using its products, according to the company’s web site. But while health care is the company’s main focus, it says that an additional 400 non-health care organizations, representing 740,000 workers, also use its single sign-on solution, including financial services and governments agencies.

It integrates with most major electronic medical record systems (EMRs), such as Epic, Allscripts, Siemens, Meditech, and McKesson; as well as with IT vendors such as Citrix, VMware, Dell, and HP. It booked $71 million in sales for 2013, for a net loss of about $10.5 million.

The company is based in Lexington, Mass., and was founded in 2001. The company has raised $23.9 million to date, most recently with a $15 million round led by SAP Ventures in 2008.

Imprivata qualifies as an “emerging growth company” under the JOBS Act, which means that until it reaches $1 billion in annual revenue, it will have reduced reporting requirements relative to other public companies.

View Imprivata’s S-1 filing here.